On April 20, Dogecoin enthusiasts across the globe celebrated the informal holiday known as “Dogeday.” This event has become a highlight in the memecoin community, particularly as they await the outcomes of several Dogecoin-related exchange-traded fund (ETF) applications.
“Dogeday” started gaining momentum in the memecoin community back in 2021. It coincidentally coincides with International Weed Day, which is also observed on April 20.
Despite its origin as a joke token, Dogecoin has managed to secure the eighth spot among cryptocurrencies by market capitalization. As per CoinMarketCap, it currently boasts a valuation of $23.3 billion.
Critics often target Dogecoin’s tokenomics, which issue 14.4 million new DOGE into circulation daily. This leads to a daily inflation rate of over $2.16 million.
According to Anndy Lian, an author and blockchain expert at an intergovernmental level, Dogecoin’s resilience is a mix of community-driven fervor, low entrance hurdles, and speculative allure. Dogecoin’s inflationary tokenomics could also be part of its appeal to retail investors, Lian suggests, as it keeps prices generally below $1, making it attractive to retail investors.
“Dogecoin’s meme-driven branding amplifies its retail appeal, especially among younger, internet-savvy investors,” Lian explains.
Like Dogecoin, most memecoins don’t have underlying blockchain use cases and their value typically spikes based on social media hype and retail hype alone.
In November 2024, Dogecoin even outperformed Porsche in terms of market capitalization, thanks to the ongoing social media endorsements by billionaire Elon Musk.
The Dogecoin community is now eagerly awaiting the deadlines in May for several DOGE-related ETF applications. They are closely monitoring the US Securities and Exchange Commission, which is currently considering multiple Dogecoin ETF filings, including those from Bitwise, Grayscale, 21Shares, and the Osprey Fund.
Grayscale’s ETF application is slated for a response on May 21, following the SEC’s decision to postpone multiple crypto ETF filings. Bitwise could receive a response on May 18, marking the end of SEC’s initial 75-day review period post the 19b-4 filing. However, the regulator might choose to defer the decision until October 2024, taking advantage of a 240-day review period.
The ETF applications from 21Shares and Osprey are still under review for their initial 19b-4 filings, with no definitive deadline set by the securities regulator.
